The Role of Allocation in a Globalized Corporate Income Tax

Author/Editor:

Jack M. Mintz

Publication Date:

September 1, 1998

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The internationalization of business activity has created significant pressures on national corporate tax systems. Rather than abandon the corporate tax field, this paper predicts that governments will develop arrangements to further globalize the corporate income tax. The paper assesses the merits and limitations of allocation methods for attributing income to different jurisdictions according to formulas measuring business activity. Such methods are being used as part of transfer pricing regimes and are likely to be enhanced over time. Whatever international arrangements develop in the future, there is a role for new institutions to improve cooperative discussions among governments.

Series:

Working Paper No. 1998/134

Subject:

Corporate income tax Corporate taxes Formula apportionment Income tax systems National accounts Personal income Taxes

English

Publication Date:

September 1, 1998

ISBN/ISSN:

9781451855579/1018-5941

Stock No:

WPIEA1341998

Pages:

39

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